Wage increases and exemptions
Management Briefs on the Wage Increases and the Wage Exemptions can be obtained on the Main Agreement portal here. To access the portal, members can purchase a password for R310 (excl. VAT). With this, they will also receive the Main Agreement handbook, at no additional cost. The password provides the access to the portal until 20 June 2017.
Our Industrial Relations and Legal Services Division will unpack the Main Agreement, including exploring wage increases and exemptions, at a training during June and in November 2016. For companies that look for a more affordable training option for larger groups, in-house training will be provided.
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Press Release - 2016/05/31: SEIFSA AWARD WINNERS MAKE THEIR MARK
Genrec Engineering, a division of Murray and Roberts, took top honours as it walked away with not only the Artisan of the Year Award, but also the Health and Safety Award of the Year.
South Africa’s largest manufacturer of secondary aluminium products, Zimco Aluminium Company, was declared the winner in the Most Innovative Company of the Year category, while Grohe Dawn Watertech scooped the Best Customer Service Award of the Year.
The Most Transformed Company of the Year Award went to the Scaw Metals Group, while the Environmental Stewardship Award was scooped by Steloy Castings.
Owing to the limited number of entries received for the Best Corporate Social Responsibility Programme of the Year Award, the judges took a unanimous decision not to have a winner for this category.
SEIFSA CEO Kaizer Nyatsumba presented the coveted CEO’s Awards. Former SEIFSA Presidents Mr Henk Duys and Mr Ufikile Khumalo jointly received the Outstanding Service to SEIFSA Award, while the Association of the Year Award went to South African Refrigeration and Air Conditioning Contractors' Association. Voith Turbo was declared winner of the Company of the Year Award.
Mr Nyatsumba said the metals and engineering sector was faced with several challenges, including the prevalence of cheap imports from Asia, the lack of competitiveness in local manufacturing and policy uncertainty.
“In such turbulent economic times and a challenging business environment, we believe that it is critically important for those companies which excel at what they do to get the acknowledgement and recognition they deserve,” he stated.
He further commended all the companies that had entered the awards and congratulated the winners in the respective categories.
“I would like to encourage these companies to continue to work hard towards excelling and providing the sector with examples of excellence. This will inspire other companies to improve their operations so that they can be afforded the opportunity to win at future SEIFSA awards,” he concluded.
Job losses in the Metals and Engineering sector
JOHANNESBURG, 27 MAY 2016 - SEIFSA Chief Economist Tafadzwa Chibanguza was interviewed on ANN7 about the job losses being experienced in the Metals and Engineering sector.
Press Release - 2016/05/27: BRICS NO THREAT TO SOUTH AFRICA’S RELATIONSHIP WITH THE WEST
Speaking at the 2nd Southern African Metals and Engineering Indaba taking place at the IDC Conference Centre in Sandton, Mr Dlamini – who was the main speaker in a plenary session that assessed South Africa’s economic relationship with the West and the extent to which BRICS may have affected it said everything must be done to further enhance South Africa’s relationship with BRICS.
“BRICS has not only offered South Africa an alternative trading partner, but it also represents an opportunity for all its member states to mobilise themselves and be in a better bargaining position when negotiating with the Western nations,” Mr Dlamini said.
He added that strengthened BRICS can be a powerful and positive force for good.
According to the Department of Trade and Industry, trade among Brazil, Russia, India, China and South Africa (BRICS) nations has increased by 70% since the group was established in 2009. In the same year China, which boasts the world’s second largest economy, became South Africa’s single-biggest trading partner. Bilateral trade between the two countries has grown in subsequent years, reaching its highest level of R270 billion in 2013.
South Africa’s trade with other BRICS nations has also been on an upward trajectory, with Pretoria cementing its position as Russia’s leading trade partner in Africa while Brazil now tops the list as the forerunner among South Africa’s trade partners in Latin America. India’s imports of gold and coal, meanwhile, have contributed significantly to South Africa’s balance sheet.
The accolades, however, have not come without criticism. Some in the audience argued that South Africa’s trade with BRICS nations has for the most part favoured Brazil, Russia, India and particularly China.
However, US Embassy Economics Minister Mr Laird Trieber, who spoke at the same plenary session, echoed Mr Dlamini’s comments that South Africa’s relationship with
the BRICS nations has not necessarily had a negative impact on South Africa’s economic relationship with the West.
“South Africa needs as many trade partners as possible. While its relationship with BRICS has grown over the years, the US still remains one of South Africa’s most strategic partners,” Mr Trieber said.
In conclusion, Mr Trieber said South Africa remained a very important trading partner of the US and that trade between the two nations will continue into the future as South Africa continues to diversify its economy.
Delivering the Closing Address on behalf of Finance Minister Pravin Gordhan, National Treasury Director-General Lungisa Fuzile said the Government was not oblivious to the challenges currently facing the manufacturing sector in general and the steel sector in particular.
He said that while most of the challenges currently facing the South African economy were influenced by factors taking place in the international environment, some of the challenges were also self-inflicted.
“It is, therefore, of paramount importance that we do everything in our power to find solutions that would boast investor confidence, grow the economy and improve our country’s credit ratings,” Mr Fuzile said.
He also commended the role that the business community played in collaboration with the Government to convince the international financial community not to downgrade South Africa’s credit rating.
press Release - 2016/05/27: SMALL BUSINESSES SHOULD FORM PART OF DTI'S 100 INDUSTRIALISTS - SMALL BUSINESS DEVELOPMENT MINISTER
Addressing delegates attending the 2nd Southern African Metals and Engineering Indaba currently taking place at the IDC Conference Centre, Minister Zulu said the
Government recognised the critical role that SMMEs play in employment creation as well as contribution towards the country’s gross domestic product. She said the Government also recognised the important role that small businesses play in the manufacturing sector in general and the metals and engineering sector in particular.
“We understand the crucial role that the manufacturing sector contributes to the economy; we understand that the majority of companies within the sector are small companies, and we also understand the challenges currently facing the sector in general and small businesses within the sector in particular.
“It is against this backdrop that we are currently involved in the setting up of a major fund to support small businesses and I have no doubt that some of your small business suppliers do need this fund because, despite the fact that you do your best to support them in line with the requirements of the Broad-Based Black Economic Empowerment Act, you also want to see them operate as independents and become tomorrow’s major players in industry. The Gazelles I am referring to are a feeder for the Black Industrialists programme managed by the Dti,” the Minister said.
She added that incubation support is crucial in the metals and engineering sector, adding that, through SEDA, her Ministry had established a number of successful incubators throughout the country.
“We have partnered with Columbus Steel in Middleburg to establish the Middleburg stainless steel incubator (MSI), which focuses on the manufacturing of various stainless steel products. In Springs, we have partnered with Zincor and Impala and have focussed on the beneficiation of zinc and copper metals.”
She said that in Richards’s Bay her Ministry has partnered with BHP Billiton in the establishment of the Downstream Aluminium Centre of Technology, which focusses on downstream cast aluminium beneficiation.
The Minister said she was delighted to learn that SEIFSA launched a small business hub in May 2015, which focusses on helping smaller businesses with compliance, enterprise and supplier development training, amongst other things.
This, she said, creates a potential for a relationship between the department and its agencies, SEDA, SEFA with SEIFSA.
“I strongly suggest that we pursue this. The SMMEs’ clients in the hub could have access to SEFA funding to grow their businesses and non-financial support through SEDA, as well as equipment and grant funding from the Black Business Supplier Development Fund within the Department,” the Minister said.
The Minister also said that the Government could not create 11 million jobs by 2030 without the contribution of the metals and engineering sector.
“This is a task that the Government just cannot do alone. I am of the view, therefore, that the steel, engineering and manufacturing sectors are some of the most important sectors to contribute in creating these jobs because the metals and engineering sector contributes roughly 28-30% of manufacturing and 6% to total GDP. In South Africa, roughly 10 000 companies are directly involved in this sector, contributing about 390 000 jobs. This sector is an important components supplier into mining, construction and the automotive sector.
In conclusion, the Minister said she would like to move beyond narrative to implementation and action.
“And I would like to make this sector a good example of how the Government works together with the private sector in the interest of all of South Africa in the creation of jobs and entrepreneurs,” she said.
press Release - 2016/05/27: WORKERS AND EMPLOYERS REMAIN AT LOGGERHEADS
The President’s statement was challenged by political analyst and Indaba panellist Professor Steven Friedman, who argued that if employers and trade unions saw each other as partners, there would not be a need for bargaining councils, which currently play a major role in South Africa’s labour relations.
Pointing to the opposing interests of employers and employees, Professor Friedman said wage negotiations are often a lifeline for the few working individuals who care for their unemployed relatives.
“Pre-1994 negotiations resulted in political inclusion for South Africa’s black majority. However, economic exclusion still continues, rendering collective bargaining difficult,” he said.
Supporting this view was Metal and Engineering Industries Bargaining Council General Secretary Thulani Mthiyane, who said black workers were historically seen as enemies not only by the apartheid government, but also corporate South Africa, as were the trade union agents who represented them.
“Unfortunately, this hostile relationship between business and trade unions still exists,” Mr Mthiyane said.
Solidarity General Secretary Gideon du Plessis weighed in with a similar view, accusing employers of viewing workers as commodities.
“This is why we will continue to see labour unrest and violent strikes in South Africa. Instead of collective bargaining, we have a situation of winner takes all,” Mr Du Plessis said, arguing that this had led to a fall in investor confidence.
To defuse the tension, Professor Friedman’s proposal for a solution came as a surprise to the delegates who filled up the IDC’s Conference Centre in Sandton.
“What we need is a crisis!
“Saying we need a crisis seems strange. It becomes less odd if we remember what ‘crisis’ originally meant. Today it is often used to talk about calamities. But originally it referred to a turning point. In the early 1990s, there was a real sense of crisis in South Africa. Everyone believed we needed to change course, and that led to the adoption of a new constitution. We need to accept now again that we have a crisis. We need to accept that the current path (of labour relations) needs to change,” Professor Friedman said.
Steel and Engineering Industries Federation of Southern Africa (SEIFA) Operations Director Lucio Trentini, echoed this sentiment, saying labour cannot exist without business, business cannot exist without labour and Government cannot exist without either.
“Government, business and labour are indispensable partners that cannot do without one another. We all share a vested interest in the growth and competitiveness of the local economy in order to preserve jobs.
“Business’s loss inevitably leads to labour’s loss. After all, it is prosperous business that employs more people, while failing business ends up letting go of workers and eventually closing shop. What is needed is a constructive approach that seeks to advance the interest of our industries. We need an approach that focuses on a win-win situation as opposed to a winner-takes-all scenario,” Mr Trentini concluded.
press Release - 2016/05/26: TURBULENT ECONOMIC CONDITIONS CALL FOR URGENT POLICY RESET
Speaking at the 2nd Annual Southern African Metals and Engineering Indaba currently taking at the IDC Conference Centre, Mr Schimmelpfenning said the slowdown in demand from China for commodities, the decline in commodity prices, particularly oil, and the slowdown in investment trade call for a response in the form of prompt and robust policy interventions if SADC countries are to survive the economic storm.
“The difficult economic conditions are going to prevail for some time. It is, therefore, important to reset key economic policies to ensure that Africa does not cease to rise,” Mr Schimmelpfenning said.
He said Africa still had in place underlying drivers of strong economic growth. He said that the exchange rate was the first line of defence as far as monetary policy was concerned. Mr Schimmelpfenning said governments of SADC countries need to advance the economic diversification agenda and strengthen revenue mobilization to create fiscal space.
Commenting on the importance of infrastructure development, Mr Schimmelpfenning said that SADC countries need to think very carefully about the challenge of infrastructure, which can be a major bottleneck to economic growth.
“SADC communities need to make sure that when growth picks up again, infrastructure does not become a bottleneck,” Mr Schimmelpfenning said.
He said that basic infrastructure such as electricity and roads were critical in unlocking any country’s economic growth.
Speaking on the same panel, which focused on Southern Africa’s huge infrastructure backlog and how to finance it, IDC Head of Basic Metals and Mining Mazwi Tunyiswa said without basic infrastructure, it is very difficult to grow the economy.
“In South Africa, we have experienced the impact of the shortage of electricity. When Eskom was unable to meet demand for electricity, economic growth was severely hampered. It, therefore, goes without saying that we need to invest heavily towards infrastructure development,” Mr Tunyiswa said.
He added that it was important for both the public and private sectors to work together in order to fund the approximately R560 billion required to invest in infrastructure within the SADC region.
“Governments should take lead in funding infrastructure projects, but the private sector also has an important role to play. Public-private partnerships will, therefore, be very important going forward,” he said.
He also said that it was equally important for SADC countries to integrate their economies and pull their resources together to fast-track the building and maintenance of much-needed infrastructure in the region.
In addition, Mr Tunyiswa urged South Africa to drive the SADC infrastructure agenda and not to be too dependent on international finance institutions to do so.
Responding to a question from a delegate about the role of the newly- established BRICS Bank, Mr Schimmelpfenning said the IMF welcomed competition and did not see the BRICS Bank as a threat.
“Given the huge infrastructure backlog in SADC, bringing another bank that has a mandate to finance infrastructure development is welcome. There are enough opportunities for everyone,” he said.
In addition to Mr Schimmelpfenning, the 2016 conference line-up also includes other international speakers such as:
- Executive Chairman of the EU Chamber of Commerce and Industry in Southern Africa Mr Stefan Sakoschek;
- US Embassy Economics Minister Mr Laird Trieber;
- International Labour Organisation Acting Director Dr Joni Musabayana; and
- Zimbabwean industrialist Mr Ian Conolly.
press Release - 2016/05/26: GOVERNMENT TO INTENSIFY INTERVENTIONS AIMED AT SUPPORTING STEEL SECTOR
Speaking at the 2nd Annual Southern African Metals and Engineering Indaba, Mr Strachan – who was the main speaker at a plenary session on Government’s policy interventions for a sustainable, globally competitive steel sector – said that the Government acknowledged the critical importance of the steel sector not only as the employer of millions of people, but also as an enabler of key economic activities. He said that the Government also acknowledged the fact that South Africa could not afford to lose its steel sector
“If we lose our steel production capabilities, we may never be able to have it back. It is, therefore, critically important that we use our comparative and competitive advantage, such as the abundance of iron ore reserves, to make sure that the steel sector not only survives, but that it is also sustainable in the long run,” Mr Strachan said.
The question was how South Africa could create an industrial policy that will result in the creation of jobs, build on competitive and comparative advantage and ensure that local steel producers enhance their export capabilities.
“The Government, through the Dti, will continue to do whatever it takes to protect local steel producers. We will make sure that we raise demand for steel through designation, which will ensure that locally-produced steel is used in projects carried out by State-owned enterprises. We will also protect downstream producers through incentives, among other initiatives, and we will continue to ensure that local producers take advantage of export opportunities emanating from the rest of the African continent,” Mr Strachan said.
He added that there are already a number of initiatives put in place by the Government to ensure the sustainability of the steel sector. He used the leather sub- sector that has been able to create in access of 6 000 jobs as a result of the Government’s policy intervention.
Speaking on the same plenary session, Scaw Metals Chief Executive Officer Markus Hannemann said trade policy is key to South Africa’s growth strategy and was imperative for the survival of the local steel sector.
He expressed gratitude and appreciation to the Government for the introduction of the 10% import tariffs put in place in August last year.
“Without this recent intervention in the form of the 10% import tariff, the steel sector would be on its dead bed,” said Mr Hannemann.
Mr Hannemann also pleaded with Government to fast-track the process of putting in place more supportive measures, such as the banning of scrap metal export, to save the South African steel sector.
“We understand that the industrialization journey will take time, but I would like to plead with the Government for speed,” said Mr Hannemann.
ArcelorMittal’s Acting CEO Dean Subramanian urged the Government, labour and business to continue to work together to ensure that the steel sector does not wither into oblivion.
In closing, Mr Strachan said that the Dti was in the process of establishing a steel committee. Part of the function of the steel committee will be to ensure that an agreement is reached on pricing and that the sector never goes back to import parity pricing.
The 2016 conference line-up includes senior South African leaders in business, labour and Government, including Finance Minister Pravin Gordhan who will deliver the Closing Address tomorrow and Small Business Development Lindiwe Zulu, who will be the main speaker in a plenary session focusing on relations between small business and big business in the metals and engineering sector.
Press Release - 2016/05/26: COLLABORATION AND INTRA-AFRICA TRADE KEY TO UNLOCKING AFRICA’s ECONOMIC GROWTH POTENTIAL
Delivering an Opening Address at the 2nd Annual Southern African Metals and Engineering Indaba taking place at the IDC Conference Centre in Sandton this morning, the former President said in order for the South African economy in general and the metals, engineering, mining, construction and automotive sectors to rise out of the doldrums and grow, it was important for Government, labour and business to work together to devise solutions that would turn the South African economy around.
“The complexity of challenges currently facing the metals, engineering, mining, construction and automotive sectors of the South African economy requires collaboration of the various stakeholders to come up with integrated solutions aimed at addressing these challenges. Collaboration will also improve the trust deficit that currently exists between Government, business and labour,” Mr Motlanthe said.
He added that it was equally important for African countries to increase trade among one another. African countries, he said, had a shared history and it was equally important for them to share solutions aimed at stimulating economic growth in the continent. “Enhanced cooperation between African countries in general and countries with the Southern African Development Community region is of critical importance in facilitating economic growth and creating employment,” said Mr Motlanthe.
In addition to collaboration and intra-Africa trade, the former President said that it was also of critical importance for the Government not only to craft policies, but also to create policies with implementation in mind.
“In such turbulent economic conditions that are felt throughout the world, it is of paramount importance that Government does not only come up with policies that look good on paper, but that these policies are implemented,” he said.
Mr Motlanthe commended the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), the conference organiser, for providing a platform for policy makers, captains of industry and labour representatives to come together and devise solutions aimed at ensuring that the four strategic sectors of the economy not only rise out of the doldrums, but also thrive.
“While it goes without saying that providing a platform such as the Southern African Metals and Engineering Indaba is of paramount importance to map challenges currently facing the economy, it is also of equal importance to monitor progress,” Mr Motlanthe concluded.
The 2nd Southern African Metals and Engineering Indaba is organised and hosted by SEIFSA in partnership with the Department of Trade and Industry and the Industrial Development Corporation.
The 2016 conference line-up includes international speakers such as:
- International Monetary Fund Senior Resident Representative Dr Axel Schimmelpfennig;
- Executive Chairman of the EU Chamber of Commerce and Industry in Southern Africa Mr Stefan Sakoschek;
- US Embassy Economics Minister Mr Laird Trieber;
- International Labour Organisation Acting Director Dr Joni Musabayana; and
- Zimbabwean industrialist Mr Ian Conolly.
These international speakers are in addition to senior South African leaders in business, labour and Government, including Finance Minister Pravin Gordhan who will deliver the Closing Address tomorrow and Small Business Development Lindiwe Zulu, who will be the main speaker in a plenary session focusing on relations between small business and big business in the metals and engineering sector.